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Astra International prepares Rp 15t of capex this year
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Astra International board of directors members attend a media briefing held to commemorate the firm’s 60th anniversary in Jakarta on Feb. 24. (JP/Prima Wirayani)
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ublicly listed diversified conglomerate PT Astra International (ASII) plans to allocate around Rp 15 trillion (US$1.1 billion) of capital expenditure (capex) this year, mainly to develop its infrastructure projects.
It allocated Rp 13.7 trillion of capex for various businesses last year.
“The funds will be used to finance infrastructure, outlet development, agribusiness and UNTR [its subsidiary heavy equipment distributor United Tractors],” ASII president director Prijono Sugiarto said on the sidelines of a media gathering to commemorate the firm’s 60th anniversary in Jakarta on Friday.
(Read also: Astra International enters property business)
The firm will allocate around Rp 2 trillion to its agribusiness line, between Rp 5 trillion and Rp 6 trillion to United Tractors group and the remainder will be used for outlet development and infrastructure projects, such as Kertosono-Mojokerto toll road in Central Java and Kunciran-Serpong toll road in Banten.
The source of the funds is the firm’s internal cash. “Our internal cash is still strong,” Prijono said.
ASII’s cash and cash equivalent amounted to Rp 27.22 trillion as of September last year.
The conglomerate saw its revenue slip by 4 percent year-on-year (yoy) to Rp 132.29 trillion during the first nine months of 2016, while its net profit dropped by 6 percent yoy to Rp 11.28 trillion.
It plans to release its full year financial report next week. (bbn)
